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The shape of AI to come in 2026

After a year where generative AI's promise collided with reality—marked by China's resource-efficient breakthroughs exposing Silicon Valley's expensive inefficiencies, agentic AI stalling at pilot stage, and an MIT study revealing that 95% of enterprise investments failed to deliver returns—2026 emerges as AI's reckoning year, where the industry must prove substance over hype, demonstrate genuine ROI, and potentially witness a fundamental shift from LLM-centric development toward novel architectures while navigating the intensifying US-China technological rivalry and the growing divide between AI-capable nations and those facing a new form of technological colonialism.

January 02, 2026 / 10:54 IST
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